: Form an LLC or S Corp to protect personal assets and provide the legal standing required by sellers.
The Investor’s Guide to Buying Consumer Debt Buying consumer debt—such as unpaid credit card balances, medical bills, or auto loans—involves purchasing "charged-off" accounts from original creditors at a significant discount. Investors aim to profit by collecting more than the purchase price, which can be as low as of the debt's face value. 1. Establish Your Business Entity how to buy consumer debt
Entry costs vary depending on the "vintage" (age) and type of debt. : Form an LLC or S Corp to
: Many states require debt buyers to be licensed and bonded before they can legally attempt to collect. 2. Secure Capital how to buy consumer debt
Consumer debt buying is rarely accessible to individuals and typically requires a formal business structure.